If you haven't heard the term mortgage rate lockdown yet, get ready to start hearing about it soon. Conditions are unfortunately perfect for this to happen in today's housing market. When we come from a period of extremely low interest rates and it's followed by a rapid increase in rates, it makes it extremely difficult for a lot of homeowner to move because mortgage payments, even for the same priced home, can be ridiculously higher if they locked in a low rate during the last two years. What will this do to the housing market? In the short term, it actually helps stabilize the market because as demand drops to historic lows inventory will dry up as well. So when a decrease in demand is met with a decrease in supply, you're not going to see any major shifts in home prices. So don't expect any major shifts this Fall in the Orange County housing market. Watch the full video by clicking learn more.
